T
he commercial real estate industry is bracing for potential changes under a second Donald Trump administration, with some experts predicting both positive and negative impacts. Trump's tax cuts and deregulation efforts could boost the industry, but his plans to raise tariffs and implement mass deportations could exacerbate inflation and increase construction costs.

    Commercial properties are critical to local economies, providing office space, retail, and industrial facilities that drive growth and employment. However, the industry has faced challenges in recent years, including the COVID-19 pandemic and rising interest rates. Despite these headwinds, commercial real estate experienced a softer landing than after the Great Recession, with Atlanta's office leasing market showing signs of recovery.

    Trump's return to the Oval Office could result in immediate changes that ripple throughout the economy. He has promised to raise tariffs on imports, which could increase construction costs and influence interest rates. His plan for mass deportations could exacerbate labor shortages in fields like construction, driving up prices. The president also has the power to order federal workers back into offices, potentially boosting occupancy rates.

    While some experts predict that Trump's policies will benefit large companies, others warn of potential risks, including increased inflation and uncertainty. Georgia's automotive industry, which has invested heavily in electric vehicle manufacturing, could be particularly affected by Trump's reported plans to kill EV tax credits enacted under President Joe Biden.

    The commercial real estate industry is waiting with bated breath as Trump takes office, unsure of how his policies will impact the market. "Businesspeople like stability," said Lynn McKee, director of Georgia State University's commercial real estate master's program. "They want to know something's going to stay the same and not going to change."